200 pounds a month is just not enough to live on

[tash_]

Hi

I have about £24000.00 of debt in credit cards, loan and overdraft. I take home £1200.00 a month and my outgoings come to about £950.00-£1000.00 a month. This is without food, buses to and from work, clothing, any emergencies, personal things etc. So £200.00 a month is just not enough to live on. One of the reasons I'm in so much debt is because I can't afford to pay all this so take even more money on my credit cards. However I've now reached the limit with them too so paying basic bills like rent is a struggle. Would I qualify for IVA? Do I have to have unpaid bills to qualify? As so far I've managed to cover them even though I've had DD rejects and cheques have bounced when there is no money in my account.

[sps]

Hi tash
Do your outgoings include payments on your credit cards loans etc - if so work it out without these including what you spend on necesseties like food and bus fares.
Sue

[lily]

The idea of an IVA is to pay back as much as you can over a period of five years.


You should work out what you pay on secured debts, ie council tax, rent, and then work out what you need to live on. (basic but affordable) ie bus fare, food, prescriptions, dental clothes etc.

What is left, WITHOUT paying credit cards, loan etc is your disposible income. That is what is used to fund an IVA.

You do not have to be in arreas to qualify, if you phone a 2 or 3 companies they will run through your income and expenditure with you. Start with the companies that post on this site. BE REAKUSTUC, five years is a long time on a budget.


You also have the optican of DMP, however this is not legally binding and creditors are not oblidged to freeze interest etc, however if you have enough disposible income to pay back your debts over five years then this would be a preferred way by your creditors.

Finally you could file for bankruptcy and be free from debts altogether, some occupations are at risk here though. It might be the best option for you as you do not appear to have any assets to protect.

Make sure you understand the pro's and cons of each option before you commit to anything.

You have taken the first all important step by admitting you have a problem and realising its time to do something about it.

Good luck, post back any questions you have and to let us know how you are getting on.

lily

[iva.com]

Hi tash,

If you are looking for someone to advise you on your options you might find our web site useful. We maintain a list of IVA firms and IPs and publish client reviews of their services.

As Lily advised above, we recommend checking several firms before deciding which to appoint.

Good luck with finding the right solution for you. Please let us know how it goes.

Kind regards,
Terry Balfour
IVA.com

IVA.com - The IVA Comparison Site
100s of reviews, All IPs and IVA firms rated.

Use our IVA firm comparison tool to find best IVA firm for you:
http://www.iva.com/iva_comparison_1.asp

[MelanieGiles]

Hi Tash

On the basis of your debts alone you would qualify for an IVA, but you would need to have at least £200 per month disposable income to be able to offer to creditors to make it viable. And more if you have any debts with HSBC.

As the other posters have suggested, work out a budget that covers all of your household and personal outgoings to see whether you could afford this solution.

Have you also considered whether bankrutpcy proceedings are more appropriate?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp